Galan Lithium Limited (ASX:GLN) has confirmed that it is fully funded to meet its present objectives and beyond.
Galan continues to rapidly advance its current projects in Argentina and Australia with a strong focus on the DFS at HMW. C
Current activities include drilling, in readiness for a resource update, construction of its pilot plant and recently awarded Hatch contract to perform the Study during 2022. In particular the engineering work pursuant to the DFS has now commenced and Galan’s Managing Director, JP Vargas de la Vega is in transit to the HMW project site.
Due to the significant increase in Galan’s market capitalisation (currently A$546 million), it is no longer eligible to procure and utilise the additional 10% placement capacity, afforded to ASX listed companies with a market capitalisation of A$300 million or less, under ASX Listing Rule 7.1A.
A special resolution is required to be approved by shareholders for this additional capacity at the earlier of 12 months from the date of AGM or date of next AGM.
Furthermore, given the rapidly evolving and increasing sentiment and acquisition activity in the lithium sector, the company considered it prudent to seek shareholder approval for additional capacity to issue potential shares at its upcoming AGM under ASX Listing Rule 7.1 (refer Resolution 4 of the Annual General Meeting Notice of Meeting).
If approved, the additional capacity to issue shares, only has a currency of three months.
Managing Director, JP Vargas de la Vega, said in view of the positive outlook for lithium and the company’s strengthening position to assess additional value accretive investment opportunities, the flexibility and convenience sought by obtaining this shareholder approval positions the company well to move quickly and secure a possible transaction, should any such opportunity emerge within this ASX mandated three-month window.
If the company pursues a transaction outside this time period shareholder approval may be required to issue additional capital, in which case it will be sought by the Company. The shareholder approval sought at the AGM is only a matter of convenience and flexibility available for three months.
It should not be considered as certain to be utilised (in whole or in part) or as limiting the company to evaluate opportunities only within this time period.
For further information please visit: https://galanlithium.com.au/